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What is PITI?

PITI stands for principal, interest, taxes, and insurance. These are the four main components that make up a monthly mortgage payment that most lenders require. The principal portion goes towards reducing the debt, the interest is calculated based on the outstanding debt. The lender holds the taxes & insurance portion in an escrow account until they make the required payment on behalf of the borrower.


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Gentle waterfall separating two ponds
Gentle waterfall separating two ponds

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